Dr. Monzer Kahf, Scholar in Islamic Economics and a Financial Expert, stated the following regarding the legal ruling of busking in Islam:
“Busking, as done in European and American streets, is a form of begging and it is of course not permissible in sharia unless the beggar is in real severe need and he/she begs to satisfy the minimum basic needs. Taking it as a profession, or fun is definitely shameful too. The Qur’an praised those who are in real need but yet they do not beg or even show that they are in need to the extent that an outsider who does not know their real situation may think that they are rich.
On the other hand, performing in public, on certain occasions, even for pay is permissible as long as what is done or said is itself permissible. The example is street shows done on special celebration days or on certain occasion such as marriage or birth. This is very often paid for by either local authorities, persons or by t he audience.”